For Product X, the income elasticity of demand is -2.56. Which of the following is therefore TRUE?
A) Product X is a necessity.
B) Product X is a luxury.
C) Product X is an inferior good.
D) Product X is a normal good.
Correct Answer:
Verified
Q315: The income elasticity of demand is
A) always
Q316: If the income elasticity of demand for
Q317: The income elasticity of demand is the
Q318: When consumers' incomes increased 6 percent, the
Q319: For Product X, the income elasticity of
Q321: Last year, Jack's income was $15,000 and
Q322: A 10 percent increase in income has
Q323: If when income increases by 2 percent
Q324: If the income elasticity of demand for
Q325: Deb's income has just risen from $950
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